German chemicals trade group VCI said it still expected the nation's chemicals businesses to eke out sales growth of 2 percent in 2013, banking on an upswing in the remainder of the year.
_0">"There is confidence in the board rooms of the chemical companies that there will be further recovery in the coming months," the association said.
"The business environment, however, remains difficult, particularly in Europe."
In the first quarter, industry sales rose just 0.5 percent, on 0.7 percent lower output volumes and average producer price increases of 1.1 percent, the lobby group said.
VCI, which represents Germany's third-largest industrial sector, reiterated it expects member businesses to charge 0.5 percent higher prices in 2013 and chemical output volumes to rise 1.5 percent.
The group's stance reflects the caution voiced by its member businesses.
Lanxess, the world's largest synthetic-rubber maker, reined in its investment budget as weak car tyre markets led to a cash outflow. Chemical industry leader BASF has said the market remained volatile and economic growth would pick up only slightly in 2013.
Bayer, in turn, has said there was room to lift prices at its high-tech plastics and chemicals business this year to counter soaring raw material prices. (Reporting by Ludwig Burger; Editing by Harro ten Wolde)